Shanghai authorities have pledged to remove all regulatory hurdles for foreign investors to set up manufacturing businesses. Mayor Gong Zheng said overseas companies in the fields of electric vehicles, value-added telecommunications services, biotechnology and hospitals will have full access to the Chinese market. “We are taking an orderly pace in further implementing institutional reforms in opening up the market,” he said at a press conference after the annual International Business Leaders’ Advisory Council (IBLAC) meeting. “We understand that openness is the biggest advantage that Shanghai enjoys.”
Admitting that foreign direct investment (FDI) in Shanghai dropped recently, Mayor Gong said that multinational firms had opened more research and development (R&D) centers, as well as regional headquarters. He also said that Shanghai municipality would ensure that foreign-funded manufacturers would be treated equally in government purchases. “They will also receive our support when they participate in building supply chains, whether upstream or downstream,” he added.
At present, foreign manufacturing companies in certain areas, such as telecommunications, are still subject to an investment ban or cap. They also face lengthy and complex approval procedures even if their investment proposals are in compliance with Chinese laws and regulations. “The Mayor has conveyed a message to the big multinational companies that Shanghai, as a gateway for them to enter the mainland, is still an investment magnet,” said Ding Haifeng, Consultant at financial advisory firm Integrity in Shanghai. “Foreign businesses are of vital importance to the city’s and the country’s economies.”
The annual IBLAC meeting, started in 1989, convenes leaders of big-name multinational businesses to provide Shanghai leaders with international perspectives and advice to drive economic development. Adidas, Roche and ABB Group are among the current membership of around 50 companies, the South China Morning Post reports.
